Joint venture partners Sany and Deutz AG have signed an agreement to build a factory to produce high-performance engines in the province of Hunan, China.
The joint venture between Deutz and Sany is part of Sany’s intelligent heavy truck project within the framework of Sany’s digitalization strategy. In addition to various off-road applications, Deutz is also taking over the manufacture of heavy-truck engines for Sany. Initially, the plan is to supply Sany with around 75,000 new engines for off- and on-road applications in 2022. These engines will comply with the China IV and China 6 emissions standards and will be built at the new plant, not far from Sany’s headquarters in Changsha, the capital of Hunan province.
As a leading engine manufacturer in the off-highway segment, Deutz is stepping up its activities in the on-highway segment as well. The company will be investing several tens of millions of euros in the joint venture and will hold a majority share of 51 percent.
Construction work on the production plant is on track to be completed at the end of 2020, and production is scheduled to start in 2021.
“We are delighted to have Deutz on board as our partner. We are looking forward to a long and successful partnership and firmly believe that this strategic partnership will lead our joint venture company to even greater success,” says Liang Linhe, Board member of Sany Group.
Dr. Frank Hiller, Chairman of the Deutz Board of Management, said: “We are confident that our partner Sany will play a key role in the heavy duty trucks market and we are pleased to be able to make a significant contribution to this with our innovative engine technology. The generous financial contribution from Hunan Province is confirmation of the long-term interest and trust that the government has shown in us.”